Walmart Inc. reported a solid performance for its first quarter of fiscal 2026, showing revenue growth of 2.5%, equivalent to a 4.0% increase when adjusted for constant currency. This brought total revenue to $165.6 billion, despite facing a $2.4 billion headwind owing to currency fluctuations.

The company’s operating income increased by 4.3%, with adjusted operating income growing by 3.0% in constant currency, reaching $7.1 billion. The gross margin rate rose by 12 basis points to 24.2%, which was supported by disciplined inventory management and improvements in business mix.

In the U.S. market, comparable sales climbed 4.5%, aided by a 21% rise in eCommerce sales. Health and wellness along with grocery departments were noted as strong contributors. Member income also saw robust growth of 14.8%.

Globally, eCommerce surged by 22%, highlighting a strong momentum across all segments. The membership and other income category increased by 3.7%, underscored by significant gains in membership fee income.

Inventory levels were reported at $57.5 billion, reflecting a 3.8% increase, affirming the company’s ability to manage stock levels effectively. The total debt stood at $52.9 billion, while cash and cash equivalents were noted at $9.3 billion.

For the second quarter, Walmart anticipates net sales to increase between 3.5% to 4.5% in constant currency. The outlook for fiscal year 2026 remains unchanged, with expectations for net sales growth at 3.0% to 4.0%.

Walmart repurchased $4.6 billion in stock during the quarter, equivalent to over 50 million shares at an average price of $90.35 per share, further showcasing confidence in its financial position.

Return on assets (ROA) was reported at 7.5%, while return on investment (ROI) improved to 15.3%, up 30 basis points year-over-year. The company’s focus on enhancing its eCommerce profitability and consolidating its market positions remains clear as it navigates various market pressures, including tariffs.

Overall, the results indicate a stable financial condition for Walmart, with both revenue and profit metrics showing positive growth trends. The company remains committed to maintaining competitive advantage while navigating a complex economic landscape.